Global Takaful market propelled into the spotlight by growth prospects

The prospects of Islamic Insurance (Takaful) model looks ever promising with the expanding demographics of Islamic countries and gloabl Islamic population. Improved standards of living and increasing awareness of Takaful, are factors which will help the market see steady growth in per capita spend on Takaful insurance premiums and also in terms of market share in comparison with conventional insurance products. Research has indicated that there are currently over 250 Takaful companies in existence globally and projections show that total Takaful premiums are likely to reach over US$7 billion by 2015.

To fuel growth of the global Takaful market, it is essential to overcome legal, regulatory and operational hurdles such as achieving Shariah compliance of financial products to ensure credibility of the products and institutions. It is also necessary to develop a consistent international approach to regulation. Thus far, various efforts have being made to address these. Notably, institutions such as the Islamic Financial Services Board (IFSB) and the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) have made great progress in developing standards.